Colonial achieves a profit of 683 million in 2017
On 26th February, Colonial presented its results for 2017. The real estate company led by Juan José Brugera and Pere Viñolas recognised profits of €683 million, 149% more than last year. Profits almost tripled compared to the figure recognised in 2016.
The strategy executed by Colonial defined major milestones during 2017, which has resulted in the company obtaining record profits. Among the Group’s highlights are:
Contracts with significant increases in rents
Colonial entered into a total of 99 rental contracts in 2017, totalling 134,831m2 of rented surface area. More than 59,000 m2 related to new contracts, and more than 75,000 m2 related to contract renewals. Barcelona was the city in which more rentals were closed.
High levels of occupancy
At the end of 2017, occupancy of the Colonial Group’s portfolio stood at 96%. The Barcelona portfolio stands out with 99% occupancy, in Paris 97% of the offices are rented, and in Madrid the occupancy rate is slightly lower (93%) due to new metres available as a result of the delivery of the Discovery Building project.
The company’s growth strategy
Colonial's growth strategy involves investing approximately €400 million each year in the acquisition of new assets. In 2017 the execution of the Alpha II plan took place in which €400m was invested in the acquisition of four properties in Barcelona and Madrid, with the purchase of the Arturo Soria property (see image) and the two Méndez Álvaro sites.
Conversion into REIT (SOCIMI) and initiatives in the PropTech field
In mid-2017 Colonial became a real estate investment trust which generated a positive amount in corporate tax amounting to €23 million following this conversion. Similarly, in October 2017, Colonial acquired a controlling stake in the Utopic_Us. co-working platform.
